Which One of the Following Best Describes an Arithmetic Average

question 30

Multiple Choice

Which one of the following best describes an arithmetic average return?

• A)Total return divided by N - 1, where N equals the number of individual returns
• B)Average compound return earned per year over a multiyear period
• C)Total compound return divided by the number of individual returns
• D)Return earned in an average year over a multiyear period
• E)Positive square root of the average compound return

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Definitions:

Flood Basalts

Vast areas covered by large volumes of basalt lava, which erupt during major volcanic episodes.

Siberia

A vast geographic region, covering most of North Asia, known for its harsh climate, extensive boreal forests, and significant mineral resources.

Ocean Plateaus

Large, elevated areas on the ocean floor, generally volcanic in origin, rising several hundred meters above the surrounding seafloor.

Basalt Magma

A type of magma that is low in silica and typically originates from the upper mantle, leading to the formation of basalt rock upon cooling.